2022 Year In Review
Remember when Nike opened a store in the metaverse? Yeah – that was already over a year ago…
2022 has been jam-packed with near unprecedented volatility in public and private markets, a slew of now-fallen unicorns, and some of the most shocking headlines to ever hit startup investing.
But as StartEngine CEO and former Activision co-founder ($70B acquisition by Microsoft) Howard Marks likes to say, where there’s volatility, there’s opportunity. Well, this year StartEngine has moved onto offense and seized A LOT of opportunities. So, without further ado, here are 22 highlights from (you guessed it) 2022.
By the Numbers:
1) $189+ Million
That’s how much money we’ve helped startups raise so far this year. How does it stack up to the competition, you ask? That puts us head and shoulders above competitors like Wefunder ($143M raised as of November) and Republic ($78M raised as of November).*
2) 184,000+ New Users
That’s the number of people who signed up for StartEngine in 2022. In October, we officially passed 1 million users on our platform. Not to mention another 700,000 coming from our upcoming acquisition (more on that shortly).
3) 20,000+ Startups
That’s how many companies have already applied to raise a round of capital on StartEngine this year. By the way, that demand has spiked 35% in just the last 3 months – not that we’re surprised.
4) Teaming up with Indiegogo
In August, StartEngine became the first and only online investment platform to team up with the rewards based crowdfunding giant. The move creates a rather massive opportunity for Indiegogo’s 800k founders and 11M backers to launch follow-on rounds on StartEngine.
5) StartEngine to Acquire SeedInvest****
In a “seismic shift of consolidation,” this fall we agreed to acquire our competitor SeedInvest. The merger could go a long way toward making us a distant first in equity crowdfunding. By just how much? Well, put together we’ll have 1.7 million users and a grand total of $1.1 billion in lifetime funding.
6) Let’s Talk Exits
Startup investing is famously all about the exit. And by acquiring SeedInvest, we’re lightyears ahead. Combined, we’ve notched a whopping 37 exits to date. That’s more than 10X the number of exits of two of Wefunder and Republic per Crunchbase.
7) Biggest. Week. Ever…X3
StartEngine hit an all-time high for funds raised in a week three times this year. We raised $8.8 million the 2nd week of February. Then we smashed that record with $10 million raised the 1st week of April, only to top it again the last week of August at $10.6 million.
8) The Ten-Millions Club
In 2022, four companies surpassed $10 million in funding in a single round, entering the prestigious “Ten Millions Club.” The inductees? Knightscope, Monogram Orthopedic, Boxabl, and StartEngine itself – we officially crossed $10 million in our OWN raise last week.
9) Inc. 5000
We were inducted into more than one club this year: Inc. Magazine officially named us to its list of the 5000 fastest growing businesses in the US. How did we rank? StartEngine made the Top 25% of all companies on the list and the Top 100 for financial services.
Growing Our Side Hustles:
10) $3.6 Million
Revenue from StartEngine’s Owner’s Bonus program spiked 80% to $3.6 million in the first three quarters. Need a refresh? Owner’s Bonus members automatically receive 10% bonus shares on qualifying investments – which covers 95% of companies on StartEngine.
11) One Investment, $20k-Worth of Bonus Shares
Speaking of, in one of our largest Owner’s Bonus payouts ever, a member of the program earned $20,000 in bonus shares from a single investment. That’s quite a payout on a $275 annual membership.
Say you invest $1,000 in Company X. You’d get $1,000 + 10% = $1,100-worth of shares.
12) 14,000+ New Scouts
When we say we believe in the power of the crowd, we mean it. That’s why we pay fellow investors up to $4,000 to refer founders to StartEngine. Our army of Scouts is growing too – over 14,000 people have joined the program in 2022 alone.
13) 4,000 Startups Referred
How are those Scouts doing, you ask? So far this year, they’ve referred close to 4,000 companies – that’s a fifth of all the businesses which applied to raise.
Ways We Got Better in 2022:
14) Those New Offer Pages…They’re Working
No doubt, you’ve seen it – we made major product enhancement to modernize our campaign pages and boost speed. The result? Dollars invested per visitor jumped an astonishing 77% site-wide.
15) A Novel Way to Invest in Collectibles
2022 brought a lot of firsts, including our first ever Bordeaux Wine Collection. We curated an assortment of 495 top Bordeaux Wines into a single investment opportunity, making it easier for prospective investors to diversify within the asset class.***
16) $650,000+ in Perks for Founders
We’re, well…kind of obsessed with helping entrepreneurs achieve their dreams (it’s why we do what we do). One of the biggest ways we got better for founders in 2022: new perks from our partners collectively worth an astounding $650,000.
17) Give a Share, Get a Share
This year we launched our brand new investor referral program. The gist? You can earn a share of StartEngine for every friend you refer, all the way up to 100 of your favorite people. Oh and your pals – they get a share too. Like we said: give a share, get a share.**
18) Becoming a Carrying Broker-Dealer
This year, StartEngine officially passed all of the regulatory hurdles to become a carrying broker-dealer, which…is a big deal. Why? Well, that allows us to offer many of the same conveniences you’d find on major trading platforms like Robinhood or eTrade.
19) StartEngine Accounts Are HERE
A prime example of said conveniences: StartEngine Accounts. Unlike other equity crowdfunding platforms, you can now create a SIPC-insured brokerage account directly on StartEngine. That means no third party needed to invest or trade your shares.
20) Invest from Sea to Shining Sea
One of the biggest challenges to launching a startup investing platform? Meeting all of the regulatory requirements for each of the 50 states. And, as of October, StartEngine can officially accept investments from across the country.
Growing Team StartEngine
21) 42 New Hires
They say it takes a village to raise a startup…OK, maybe they don’t say that but you get the point. We added 42 new team members this year to make sure we’re poised to seize on even more opportunities in 2023.
22) 6,400+ StartEngine Shareholders
None of this year’s highlights would have been possible without the support of fellow investors who decided to become Owner’s in StartEngine itself. And in 2022 alone over 6,400 everyday people like you joined our mission to reshape finance.
*Source = https://kingscrowd.com/markets/. Please note a KingsCrowd Edge Subscription is required to access this report.
**The shares issued through this referral program are being issued through a Regulation A (Reg. A+) Tier II offering of securities. The “value” of these securities is based on the offering price of the Reg. A+ offering.
This Reg A+ offering is made available through StarEngine Crowdfunding Inc.. No broker-dealer or intermediary involved in offering. This investment is speculative, illiquid, and involves a high degree of risk, including the possible loss of your entire investment. For more information, please see the most recent Supplements, Offering Circular, and Risks Related to this Offering.
You should understand that there is currently no active market for these securities. It is possible they may be quoted on StartEngine’s alternative trading system, StartEngine Secondary (the “ATS”) in the future. It is important to know that companies which intend to quote securities on the marketplace are subject to certain requirements which they may or may not be able to satisfy in a timely manner. Even if a security qualifies to trade, there is no guarantee an active trading market for the securities will ever develop, or if developed, be maintained. Further, any security which does trade may also be removed from the marketplace at any time. You should assume that you may not be able to liquidate your security for some time, if ever, or be able to pledge these shares as collateral.
***This Reg A+ offering is made available through StartEngine Collectibles Fund I, LLC. No broker-dealer or other intermediary is involved in this offering. This investment is speculative, illiquid, and involves a high degree of risk, including the possible loss of your entire investment. Please see the Offering Circular and Related Risks for more information.
****Completion of the acquisition is subject to closing conditions and regulatory approval. See additional information here.